Release Explanation: The Leading Index measures the overall economic health. It measures 10 components of the economy including; consumer sentiment, new industrial orders, housing permits, equity prices, average hourly rate, interest rate spreads. It can be a confirmation of the overall direction that the economy is moving in. A currency will already include the elements of this report.
Trade Desk Thoughts: The Conference Board's Leading Economic Indicator declined in February, following a slight increase in January, which was revised lower due mainly to data revisions in manufacturers' new orders and real money supply.
Between August 2008 and February 2009, the index fell 2.1% (a -4.1% annual rate), faster than the decline of 1.6% (a -3.1% annual rate) for the previous six months. In addition, the weaknesses among the leading indicators have remained widespread in recent months. However, the downward trend that began in July 2007 is showing a moderated rate of decline in recent months.
The Coincident Economic Index for the U.S. fell again in February, driven by continued declines in employment and industrial production. Between August 2008 and February 2009, this index of current economic activity dropped 3.1% (a -6.1% annual rate), a much larger fall than the decrease of 0.9% (a -1.9% annual rate) for the previous six months.
Forex Technical Reaction: Stocks began to rise after 10:00 EDT and the dollar fell against the better-yielders.